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Grate the potatoes and onions. Use a food processor or a box grater to grate the potatoes and onion.

To get crispy latkes, the potato and onion mixture needs to be dry. Transfer the grated potato and onion onto a large triple layer of cheesecloth. Gather the corners and tie around the handle of a wooden spoon. Dangle the bundle over a large bowl, then twist and squeeze the potatoes and onion to remove all of the liquid. Pour out the liquid from the bowl, but keep the potato starch remaining at the bottom.

Mix the potato starch, egg, matzo, salt, and pepper with the potatoes and onion. Use your fingers to distribute all of the ingredients evenly.

Form the latkes. Use a ¼-cup measuring cup, a slotted spatula, your fingers, and a fork to form a flat, four-inch patty.

Fry the latkes. Heat the oil until latkes sizzle immediately upon entering the oil. Fry until each side is dark golden-brown.

Remove latkes from the oil and drain on paper towels. Serve or keep warm in the oven.